WTI Oil regained traction on Thursday and broke above previous high at $52.41, signaling bullish continuation after larger bulls took a breather in past two days when the action was shaped on double long-legged Doji.
Firmly bullish techs, reinforced by freshly formed 20/200SMA Golden Cross, support further advance and ignore overbought conditions for now.
Additional support came from better than expected US crude stocks data (oil inventories fell by 1.8 million barrels last week after previous three weeks’ build due to closure of refineries).
Oil price is riding on extended third wave of five-wave cycle from $45.57, which eventually broke above its FE 138.2% ($52.30), en-route towards round-figure $53.00 barrier and FE 161.8% at $53.21, which mark immediate targets.
Key med-term barrier at $55.22 (2017 high, posted on 03 Jan and the highest level of the recovery from $26.04) is expected to come in focus on further bullish acceleration.
Lows of past two days at (51.62/41), also repeated strong downside rejections, mark decent supports, followed by rising daily Tenkan-sen at $50.99.
Res: 53.00, 53.21, 53.77, 54.00
Sup: 51.85, 51.62, 51.41, 50.99
